The Effects of Imposing carbon Tariffs on the Amount of Production and Trade in Energy Intensive Industries in Iran Using GTAP-E General Equilibrium Model

Currently, imposing carbon tariffs is criticized as one of the factors limiting trade between countries. Considering the importance of dealing with climate change and the interest of countries in imposing climate policies such as imposing carbon tariffs, the present research evaluates the effects of imposing this policy under four scenarios of imposing carbon tariffs by the European Union, Japan, the United States of America and all regions. It has studied the production and trade in Iran’s target industries using the environment-oriented general equilibrium model of the Global Trade Analysis Project (GTAP-E). In this regard, the 141 countries and regions and 65 sectors in the GTAP10 data have been divided into 5 regions and 9 sectors according to the purpose of the research. The estimation of the model using RunGtap software shows that imposing the carbon tariff on energy intensive industries in Iran. According to the results of this study, in order to maintain and develop the export markets of energy-intensive industries, it is necessary to adopt the necessary measures to decarbonize the production process of the aforementioned industries, including the use of new technologies, incentive policies, and carbon pricing. Key words: carbon tariff, energy industries on Iran, production, trade, GTAP-E model.